School board approves increase to impact fees

Jack Barnwell Staff Writer RidgecrestDI

Saturday

Oct 20, 2018 at 12:01 AM

The Sierra Sands Unified School District board of education voted Thursday to raise its school impact fees charged against new residential development projects and construction/industrial construction within the district boundaries and approved a corresponding justification study.

According to Pamela Smith, assistant superintendent of business and support services, revenue from those fees, also known as Level I fees, will be utilized for construction or reconstruction of school facilities, administrative or operations facilities, acquisition or lease of property, and act as local funding if the district applies for state funding under the distressed school category.

The justification study was prepared by Koppel & Gruber Public Finance, which tracked current and planned building activity over the next decade. It drew data from the San Bernardino and Kern permit application databases as well as the city of Ridgecrest Planning Commission agendas.

The primary purpose for the fees comes as the school district anticipates a growth in its student population over the next decade in correlation to projected community growth. As such, the district would be impacted by the swell of new students, and need new or expanded facilities to accommodate them.

According to the study, 228 students are expected over the next decade based on projected increase of 886 housing units (split between single-family and multi-family residential units).

Enrollment in the school district has begun to increase slightly after years of subtle decline or being flat. The fees also come at a time when developers are planning new housing or apartment projects in the city.

The fees for new residential projects will go up to $3.79 per square foot from $3.48, while commercial/industrial development fees go from 56 cents per square foot to 61 cents, except for rental self-storage, industrial/manufacturing, hospitality and shopping centers, which have a reduced cost.

Essentially, if a developer builds a new home at a certain price, a fee of $3.79 would be tacked on to the development fees and go to Sierra Sands. The funds would then be assigned to a specific account.

Smith said the State Allocation Board increased the amount the district can charge in January, as done every even year. The justification study must be conducted in order to increase the fees.

According to the justification study, the funds cannot be used for regular maintenance or routine repair, sampling or inspection or asbestos-containing material in most cases, and deferred maintenance.

The fees are authorized under California government and education codes "to offset the impacts to school facilities from new residential and commercial/industrial construction and reconstruction," according to the justification study.

Board member Bill Farris mused on the need for the fees.

"As I understand it, the state over the years has moved away from the total responsibility of classroom construction and has moved it more toward the local districts bearing part of the burden," Farris said.

Smith noted development fee revenue can come into play when a grant requires local matching funds — something required by Department of Defense grants.

"One of our major sources of funding is DoD grants, which require a 20 percent match," Smith said.

DoD grants are what Sierra Sands Unified School District received in 2012 to modernize Sherman E. Burroughs High School and build a whole new Murray Middle School on Navy property outside the NAWS China Lake fence line.

In addition, a $270 million in federal funding allocated for 2019 to installation-side schools may benefit Richmond Elementary School, the remaining district school left aboard China Lake. Should Richmond be selected, a local match would be required.

Smith said if school asked the state for assistance under Proposition 50 financial hardship qualifications, California would require the school district to collect the maximum amount of development fees.

She added the district's primary source of revenue is its bonds, developer fees, sale of surplus property (if applicable), federal grants, and hardship funding from the state.

Farris, for his part, said there are reasons that drive the district's decision to increase development fees. He added that he understands concerns shared from past events that the fee increases could constrict growth.

"I think it's important to help them understand as far as the district is concerned that while we appreciate growth and development, it does impact the school district," Farris said. "We have to identify the source of income that can be contributed to the building of our schools."

Since California has diminished its participation, the burden falls to the local districts, which in turn is required to maximize the fees if it wants financial hardship assistance from the state.

"Sometimes people say 'just because you can do it, doesn't mean you should,'" Farris said. "In this case it's we can and we should because if we don't we have a gap."

He added that based on construction activity over the last five or six years, the study's growth projections are conservative.

"The costs of impact are greater than what we are asking for, so to me it seems to be an appropriate justification study and necessary for our district to do," Farris said.

The board voted 4-0, with board member Tim Johnson absent. The increase will take effect in December.

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